Friday, October 19, 2012

A wise man once said there is no such thing as a free lunch. Keynesian economics says to tax the rich and discourage saving so that people are encouraged to keep their money flowing. Each time it is spent, it can be taxed and the more people spend the better it is for the poor.

Politicians promise lower taxes and free healthcare, but the money has to come from somewhere. When you tax Big Oil Companies to pay for your Green Energy, gas prices go up to compensate. When gas prices go up, everything goes up.

A family making $50,000 a year spends about to $15,000 on gas & groceries alone. The spike in gas prices have driven up the cost of living. On the flip side, a family making $500,000 a year spends... you guessed it, about $15,000 a year on gas and groceries. So the impact on the middle class is 10 times more severe. The doubling of gas prices in the last 4 years is the equivalent of a $7,500 tax increase on every middle and lower class family!

Bottom line. There are always consequences. For every action, there is an equal and opposite reaction. You cannot tax the rich without taxing the poor. You cannot raise the poor out of poverty by raising taxes on anyone. Taxes and regulations on big corporations are strangling our lower and middle classes.

Class warfare is smoke and mirrors. A tax on one American is an attack on all Americans.